Doing Business In (Insert Country Name Here) - BNA

As part of the international effort to combat money laundering and the financing of
terrorism, France's banking regulations have undergone several changes, which affect
the handling of checks, as recommended by the Financial Action Task Force. Additional
changes are expected. France sometimes uses its powers under national law to freeze
assets of terrorists.
Expropriation and Compensation Return to top
Under French law, private investors are entitled to compensation if their properties are
expropriated, and such compensation must be adequate and paid promptly. In France's
bilateral investment treaties, the French government promises to provide both prompt
and adequate compensation. There have been no recent disputes involving
expropriation of U.S. investments.
Dispute Settlement Return to top
There have been few major disputes involving established U.S. firms in recent years.
Government decisions in investment cases can be appealed to administrative tribunals
and ultimately to the Council of State (Conseil d'Etat). The rights of U.S. investors are
also protected by the U.S.-French bilateral convention (see Section B below).
The judicial system is independent. Property and contractual rights are enforced by the
French civil code. Judgments of foreign courts are accepted and enforced by courts in
France once they have been "declared executor" by a French judge through "executor"
proceedings (Art. 2123 of the French Civil Code and Art. 509 of the Civil Procedure
Code). However, in some civil cases and in bankruptcy cases, foreign judgments are
recognized and enforced by French courts without executor proceedings.
France is a member of the World Bank's International Center for the Settlement of
Investment Disputes (ICSID – [http://www.worldbank.org/icsid]. In addition, in most of its
bilateral investment treaties (BIT's) France has agreed to accept binding arbitration to
resolve investor-state disputes. However, most of France's BIT partners are developing
countries whose investors have few investments in France. (See below).
Performance Requirements and Incentives Return to top
Investment Incentives
France offers a range of financial incentives to foreign investors. The following
information reflects incentives, as they existed at time of this writing. The government
has a broad range of investment and competitiveness measures in the legislative
pipeline.
France's domestic planning and investment promotion agency, DIACT (Délégation
Interministérielle a l’Aménagement et la Compétitivité des Territoires) has a broad
mandate, including increasing the “attractiveness” of France for foreign investors and
assisting potential investors. In addition, financial subsidies and tax incentives are
offered at the local, regional and national government level to attract investment to
France's less affluent areas. Incentives are available equally to French and foreign
investors and eligibility requirements are the same.
2/15/2008 Country Commercial Guide for France 108
INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE,
© 2007. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.